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The Louisiana Oil and Gas Association has outlined several bills and resolutions they support in the 2020 Legislative Session, many of which the group says would give the state's oil producers much-needed aid as the industry faces a historic oil crisis.

Many of the items LOGA is targeting have been on the group's radar for years, but LOGA President Gifford Briggs has said the measures are needed now to keep the industry afloat.

Reduce Louisiana's severance tax on oil and gas

House Bill 506 status: Passed by the House, 72-24

House Concurrent Resolution 65 status: Awaiting passage in the House

House Bill 506, by Republican Rep. Phillip DeVillier of Eunice, would scale down the severance tax on oil and gas from 12.5% to 8.5% over the next eight years. The severance tax is a state tax paid on all natural resources produced in the state, but the bulk of the collected revenue comes from oil.

The bill was passed by the House on Friday, and will move to the Senate side.

The bill originally had a provision that would drop the tax to 2% if oil prices fell below $30 per barrel, but it was struck by an amendment in the House Appropriations Committee. It passed the committee Monday with a unanimous 19-0 vote.

Late last week, the bill passed the House Ways and Means Committee 14-3.

According to the fiscal note, the bill would cut about $112.6 million in state revenue over the next five years.

The severance tax provides the state with a significant amount of revenue. The majority of the revenue goes to the state, and in fiscal year 2019, the tax brought in $529 million, according to the Louisiana Department of Revenue.

Another measure, House Concurrent Resolution 65 by Lafayette Republican Rep. Stuart Bishop, would suspend the severance tax on oil and gas starting from the date it's adopted until 60 days after the end of the 2021 legislative session.

State Rep. Stuart Bishop, R-Lafayette, has announced that he will seek re-election to continue representing District 43 in the Louisiana House of Representatives.(Photo: Submitted photo)

Gov. John Bel Edwards delayed collection of the payments in April, but he said the Legislature would have to act to fully suspend the tax.

A fiscal note for the resolution said it cut about $302 million in state tax revenue from 2020 to 2022.

Limiting coastal lawsuits filed by local governments

Senate Bill 359 status: Awaiting passage in the Senate

Senate Concurrent Resolution 7: Passed by the Senate and referred to House Committee on Natural Resources and Environment

Senate Bill 359, written by Republican Sen. Bob Hensgens of Abbeville, would make it so that only certain state officials, such as the attorney general, could file lawsuits related to states concerns regarding coastal use permits.

The bill was filed before the COVID-19 crisis, as streamlining the coastal lawsuits. The organization and other oil and gas advocates have criticized the lawsuits, saying they drive away oil producers and jobs. LOGA has pushed for the bill, saying it is needed during the crisis so companies can pay employees instead of paying attorneys.

LOGA says several groups, including the regional economic development coalition One Acadiana, support of the bill.

The bill had passed through the Senate's Committee on Natural Resources earlier this month, but the Senate sent it to the Finance Committee on Monday. At the time, a joint statement from Briggs and Tyler Gray, president of Louisiana Mid-Continent Oil and Gas Association, said they were hoping for a "swift hearing" from the committee, though they disagreed with the move.

“On more than one occasion, the Secretary or Department of Natural Resources has indicated he has all of the necessary resources to enforce the coastal program. Further, the Attorney General of Louisiana has indicated there is no anticipated fiscal impact to his department," the statement said. “Nonetheless, the legislative fiscal office is referencing public testimony without consideration for current law providing for contingency and fee shifting arrangements as reason for the move."

Senate Concurrent Resolution 7, by Slidell Republican Sen. Sharon Hewitt, is another measure championed by LOGA. The resolution urges local entities to drop the coastal lawsuits.

LOGA and LMOGA have expressed support for the measure and applauded the Senate for passing it this week.

“The lawsuits target over 200 companies— the majority of which are small and independent operators, who help provide over 33,000 direct high-paying jobs and $3 billion in wages," Briggs said.

“We applaud Sen.or Hewitt and all the members for their leadership and support of SCR 7," Gray said.